What are the legal differences between Combat-Related Special Compensation (CRSC) and concurrent receipt under existing law?

1. What the programs legally are and their purpose

Both programs were enacted to permit certain military retirees to receive both military retired pay and VA disability compensation rather than suffer a dollar‑for‑dollar offset, a policy change that began with CRSC in 2003 and CRDP in 2004 ^{[7] [2]}. They are statutory exceptions to the longstanding rule that prevented simultaneous receipt of both benefits and are often discussed together under the umbrella term “concurrent receipt,” though CRSC and CRDP are separate legal authorities ^{[1] [7]}.

2. Eligibility: combat nexus versus longevity and rating thresholds

CRSC is legally limited to retirees whose disabilities are linked to combat or specified combat‑related causes and can cover medically retired personnel with fewer than 20 years of service; eligibility depends on Service determinations about which portions of a VA rating are combat‑related ^{[3] [8]}. By contrast, CRDP is tied to longevity and VA rating thresholds—traditionally available to retirees with 20 or more years of service and at least a 50% VA disability rating—and does not require the disability be combat‑related ^{[8] [5]}.

3. Administration and the need to apply

Statutorily, CRDP payments are automatic once a retiree meets the qualifying criteria and DFAS processes the concurrent retirement pay; CRSC requires an affirmative application to the retiree’s Service and an adjudicative combat‑related determination ^{[4] [9]}. That distinction has practical consequences: eligible retirees may receive CRDP without extra paperwork, whereas CRSC applicants must navigate Service review and may face different determinations across branches ^{[3] [2]}.

4. Money, taxes, offsets and calculation differences

CRSC payments are treated as special compensation and are exempt from federal income tax, whereas CRDP is generally taxable because it is paid as retired pay ^{[4] [5]}. Legally, CRSC payments are not intended to exceed the amount of the VA offset and may be limited if the Service’s combat‑related rating is lower than the VA rating; consequently CRSC may not fully eliminate the practical effects of the VA waiver in all cases ^{[2] [10]}. CRSC also contains special statutory calculation rules—most notably a cap for certain medical retirees (Chapter 61) that can limit or eliminate CRSC for those individuals ^{[11] [6]}.

5. Exclusivity, choice, and practical tradeoffs

Federal law bars simultaneous receipt of both CRDP and CRSC; a retiree eligible for both must elect between them or follow statutory open‑season processes where available ^{[11] [12]}. The choice can be financial and personal: some retirees may prefer tax‑free CRSC even if numerically smaller, while others select higher taxable CRDP amounts if that yields greater net income—decisions shaped by the Service’s combat rating, tax status, and family considerations ^{[9] [2]}.

6. Policy context, reforms, and competing agendas

Congressional and advocacy activity continues: proposals such as the Major Richard Star Act would expand concurrent receipt choices for certain medical retirees and illustrate the unresolved policy tradeoffs between compensating longevity versus compensating combat‑related injury ^{[13] [4]}. Veterans groups, military associations, and DoD interests press different agendas—some seeking broader automatic concurrent receipt, others mindful of budget and retirement‑fund mechanics—so the legal distinctions above remain politically contested ^{[10] [1]}.